Picture this. You’ve invested a substantial amount of your net worth in a single commodity. You can’t hold it, touch it, or predict the price. It isn’t well understood and the market is extremely opaque; at this point no one even knows who is in the market. Most alarmingly, the price of your commodity swings wildly, but you’ve gotten lucky and the price has swung in your favor. For now. What is this you ask? You guessed it! You’re a bitcoin speculator…I mean investor. The price of bitcoin is a constant point of concern for folks who are trying to profit from the digital currency revolution, or for folks who are just rooting for the revolution to occur. So why is the price, the price? What moves it?
The enthusiasm for bitcoin from bitcoin believers in undeniable, but any enthusiast who claims to understand the price movements is either delusional or malicious. That doesn’t stop people from claiming to be oracles, though. A number of “professionals” claiming to understand bitcoin market movements have been preaching for years about things